As recently as the 1990s, to obtain a municipal apartment, a tenant had to pay a substantial deposit, often amounting to several times the monthly salary. This served as security in the event of, for example, damage to the apartment. After November 12, 1994, it was no longer necessary to pay a deposit.

Today, in many municipalities, returned deposits have only symbolic value, sometimes as little as PLN 1. This is due, among other things, to the decline in the value of money in the 1990s and the fact that the funds were kept in non-interest-bearing accounts. If a tenant wants to receive an adjusted amount—that is, one restored to its appropriate value—they must go to court.

The Court Divides It in Half

When making any adjustments, the court cannot automatically apply a mathematical conversion factor, as this is impermissible. The judge is required to comprehensively consider the circumstances of each case. Determining the amount of the adjusted deposit is the biggest problem. The average salary in the past and at present is generally used. Courts divide the amount obtained through this calculation in half, so that both parties bear equal costs resulting from the decline in the value of money.

Under the law, a deposit paid before November 12, 1994, less any amounts owed, must be returned within one month of the tenant moving out or purchasing the premises.

A Shortcut

Bolesławiec Municipality uses the average salary as its conversion factor. First, the amount of the deposit paid is divided by the average salary in the year when the money was deposited. The resulting number is then multiplied by the net value—after deducting tax and ZUS contributions—of the average salary in the quarter preceding the payment of the adjusted deposit. The city pays 30 percent of this amount. Considering the time and costs that would have to be devoted to possible court proceedings, the municipal government's proposal may be attractive to many people.

Detailed information is available from the Municipal Housing Management Authority at 23 Dolne Młyny Street.